July 18, 2023
LC Packaging has announced the launch of its Living Wage Programme, as part of its sustainability strategy: 2030 Ambition. The family-owned producer and distributor of flexible transport packaging strives to become a leader in sustainable packaging by achieving ambitious social and environmental goals. The company aims to ensure that, by 2030, 100% of its key production partners' employees earn a living wage, instead of the legal minimum wage. To achieve this living wage goal, LC Packaging takes the lead and invites and supports its suppliers to improve wage standards.
According to the International Labour Organisation (ILO), for one out of five workers worldwide, a job does not provide a way out of poverty for them and their families. In many countries a legal minimum wage does not allow for a decent standard of living. Still, most companies ask their suppliers to pay at least a minimum wage, rather than a living wage.
LC Packaging’s Living Wage Programme -inspired by the IDH roadmap on living wages and United Nations Global Compact Living Wage Analysis Tool- consists of five steps designed to help production partners achieve and maintain a living wage. The programme includes measuring the living wage gap, defining a living wage strategy, reporting on progress and verification of living wages paid. Last but not least, LC Packaging’s production partners are asked to share their best practices to inspire and help others in the packaging supply chain to achieve the same.
For calculating the living wage gap, LC Packaging and its partners are supported by IDH, a global organization transforming markets.
Lotte Mastwijk, Head of Sustainability at LC Packaging:
“Ensuring a living wage starts with understanding whether a living wage is actually paid, instead of making assumptions based on a risk analysis or assuming a minimum wage set by the government equals a living wage. With the support of IDH and by making use of its Salary Matrix, together with our partners we will measure the gap between effective wages and credible living wage benchmarks. The outcome is a baseline and starting point to decide on mutual actions to overcome the living wage gap together and ensure a living wage is paid, also in the years to come. This is a supply chain responsibility: suppliers can never afford a living wage if buyers always aim for the lowest price.”
In August 2023, LC Packaging will start a pilot of its Living Wage Programme with four partners spread over Africa, Asia and Europe, producing a variety of packaging products (cardboard, jute and plastics). Following the pilot, all key partners – representing over 80% of LC Packaging’s annual procurement spend – are requested to join the living wage programme.
By enabling its key production partners to increase wages from a legal minimum wage to a living wage, LC Packaging aims to eliminate ‘working poverty’ from its supply chain and improve the livelihoods of at least 15,000 families in developing countries.